Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for Canadian energy stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

[KevelPitch/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Recent Energy Stocks News

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

5 TSX Energy Stocks to Buy as Oil Pulls Back on Ceasefire News

| Amy Legate-Wolfe

Energy stocks are falling, but what do these businesses actually look like at $92 oil?

Read more »

electrical cord plugs into wall socket for more energy
Energy Stocks

How Many Capital Power Shares Would it Take to Earn $1,000 in Annual Dividends?

| Karen Thomas, MSc, CFA

Capital Power stock is heading into a period of strong growth, backed by strong industry fundamentals and a growing market…

Read more »

canadian energy oil
Energy Stocks

A Dividend Stock Worth Adding to Your Portfolio This Month

| Joey Frenette

TC Energy (TSX:TRP) stands out as a great dividend pick this April.

Read more »

A worker gives a business presentation.
Energy Stocks

A Year After the Rate Pivot – Here Are 2 Canadian Stocks I’d Still Buy Now

| Jitendra Parashar

Even with lower rates, these two Canadian energy stocks look like strong buys.

Read more »

people ride a downhill dip on a roller coaster
Energy Stocks

2 Canadian Dividend Stocks That Make Sense to Hold When Markets Get Bumpy

| Sneha Nahata

These dividend-paying stocks are supported by businesses with strong fundamentals and defensive business models.

Read more »

rising arrow with flames
Energy Stocks

A Canadian Energy Stock Ready to Bring the Heat in 2026

| Daniel Da Costa

Even before oil prices began surging, this Canadian energy stock was a top pick for dividend investors in 2026.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Canada Is an Oil Exporter: Are You Investing Like One?

| Joey Frenette

Suncor Energy (TSX:SU) might be overbought in an oversold market, but there is a case for buying.

Read more »

Happy golf player walks the course
Energy Stocks

How Much Passive Income Can You Generate From $50,000 in Canadian Natural Resources?

| Joey Frenette

Canadian Natural Resources (TSX:CNQ) might be the perfect target for income investors as shares look to come in.

Read more »

Young Boy with Jet Pack Dreams of Flying
Energy Stocks

1 Canadian Energy Stock Set for Major Growth in 2026

| Amy Legate-Wolfe

Suncor is a straightforward 2026 energy play because efficiency gains and disciplined spending can translate into strong cash returns.

Read more »

Child measures his height on wall. He is growing taller.
Energy Stocks

1 Energy Stock Poised for Big Growth in 2026 for Canadians

| Amy Legate-Wolfe

This small-cap Canadian oil producer looks set up for 2026 growth after beating production guidance and improving its balance sheet.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Energy Stocks

How to Earn an Average of $386 Every Month Tax-Free With Your TFSA

| Andrew Walker

This popular TFSA strategy can generate solid returns while balancing risk.

Read more »

Child measures his height on wall. He is growing taller.
Energy Stocks

A Canadian Energy Stock Poised for Big Growth in 2026

| Amy Legate-Wolfe

Tourmaline looks set up for 2026 because it’s growing production while staying disciplined on spending.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Canadian Renewable Energy Stocks: Hype or Historic Opportunity?

| Daniel Da Costa

Here's why renewable energy companies might be some of the best long-term dividend-growth stocks that Canadians can buy now.

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

3 Canadian Stocks Tied to the Real Economy (Not Hype)

| Amy Legate-Wolfe

These “real economy” stocks are driven by backlog, contracted projects, and production volumes.

Read more »

some REITs give investors exposure to commercial real estate
Dividend Stocks

5 Cheap Canadian Stocks to Buy Before the Market Notices

| Amy Legate-Wolfe

The best “cheap” TSX stocks usually have improving cash flow and a clear catalyst that can flip investor sentiment.

Read more »

Tractor spraying a field of wheat
Dividend Stocks

3 TSX Stocks Built to Earn, Pay, and Endure

| Amy Legate-Wolfe

The safest bets are often Canada’s cash-generating “engine” companies tied to energy and global demand.

Read more »

3 colorful arrows racing straight up on a black background.
Energy Stocks

3 Stocks to Buy and Hold for 2026 and Beyond

| Christopher Liew, CFA

Three TSX stocks are buy-and-hold candidates for 2026 and beyond for dividend sustainability and pricing power.

Read more »

alcohol
Energy Stocks

A 6.1% Dividend Stock Paying Cash Out Monthly

| Daniel Da Costa

Here's why this monthly dividend payer is one of the best Canadian stocks to buy for reliable and significant passive…

Read more »

pig shows concept of sustainable investing
Energy Stocks

How $14,000 in This TSX Stock Could Generate $860 in Annual Income

| Puja Tayal

Explore tips on maximizing your annual income with dividend stocks and learn more about Freehold Royalties' offerings.

Read more »

senior man and woman stretch their legs on yoga mats outside
Energy Stocks

2 Stocks to Buy and Hold Forever: A Long-Term Play for Your Portfolio

| Jitendra Parashar

With steady cash flow, ongoing expansion, and reliable dividends, these two top Canadian stocks remain solid options for long-term investors.

Read more »

Traffic jam with rows of slow cars
Energy Stocks

The Fabulous March TFSA Stock With a 4.9% Monthly Payout

| Rajiv Nanjapla

Given its solid growth outlook, reasonable valuation, and attractive yield, Whitecap appears to be a compelling addition to your TFSA…

Read more »

middle-aged couple work together on laptop
Dividend Stocks

Canadians: Here’s the TFSA Amount You Need to Retire, Plus 3 Stocks to Get There

| Amy Legate-Wolfe

You'll want to use a sustainable withdrawal rate to figure out your goal.

Read more »

a man celebrates his good fortune with a disco ball and confetti
Energy Stocks

Prediction: These 3 Stocks Will Crush the Market in 2026

| Jitendra Parashar

These three Canadian stocks are showing all the right signs to crush the market in 2026.

Read more »

electrical cord plugs into wall socket for more energy
Energy Stocks

What to Know About Canadian Utility Stocks in 2026

| Karen Thomas, MSc, CFA

Fortis is Canada's top utility stock, with a 52-year track record of rising dividends as it benefits from strong electricity…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

4 Canadian Stocks to Own When Markets Get Nervous

| Amy Legate-Wolfe

When investors flee risk, the market usually rewards businesses that enjoy steady demand.

Read more »

combine machine works the farm harvest
Dividend Stocks

5 TSX Dividend Stocks Yielding 2.9% to 6.2% for Steady Cash Flow in Any Market

| Amy Legate-Wolfe

Steady dividend cash flow comes from blending durable payers across sectors, not just chasing the biggest yield.

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

3 All-Weather Stocks Canadians Can Confidently Buy Today

| Brian Paradza, CFA

Canadian Natural Resources (TSX:CNQ) stock, Fortis (TSX:FTS) stock and a railroad could do well, whatever happens to the Canadian economy

Read more »

Runner on the start line
Energy Stocks

1 Unstoppable Canadian Energy Stock to Buy Right Here, Right Now

| Joey Frenette

Cenovus Energy (TSX:CVE) stock looks like a great long-term play, even after going parabolic.

Read more »

woman gazes forward out window to future
Dividend Stocks

4 Canadian Stocks Built to Reward Patient Investors in 2026 and Beyond

| Amy Legate-Wolfe

In a headline-driven 2026, buy-and-hold can win by sticking with businesses that customers and the economy need no matter what.

Read more »

earn passive income by investing in dividend paying stocks
Energy Stocks

The 1 TFSA Stock I’d Set, Forget, and Never Touch Again

| Jitendra Parashar

If you’re looking for a reliable TFSA stock to hold for decades, this one checks nearly every box.

Read more »

canadian energy oil
Energy Stocks

1 Canadian Energy Stock Quietly Positioning for a Big Year

| Chris MacDonald

Here's why Suncor (TSX:SU) looks well-positioned to be a key winner for investor portfolios in 2026 and beyond.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

TFSA Millionaire Goals: Here’s How Much You Should Save Monthly

| Adam Othman

Here’s how to maximize the potential of your TFSA and find one of the best TSX stocks to help you…

Read more »

oil pump jack under night sky
Energy Stocks

The Oil Shock Is Here: How to Protect Your Investments Now

| Chris MacDonald

For investors looking to protect their portfolios from this rampant oil shock, here are three top stocks to consider buying…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Canadian Investors: Here’s the 1 Sector You Want to Own When Oil Surges

| Chris MacDonald

These Canadian energy stocks stand out as top-tier picks for long-term investors looking to benefit from oil prices, which are…

Read more »

Oil industry worker works in oilfield
Energy Stocks

If You’d Invested $100 in Suncor Energy 5 Years Ago, Here’s How Much You’d Have Today

| Puja Tayal

Find out how being invested can lead to wealth building, even with a small amount, like $100.

Read more »

oil pump jack under night sky
Energy Stocks

The Canadian Energy Stock I’m Buying Now: It’s a Steal

| Brian Paradza, CFA

A "mass" resignation of directors of Gran Tierra Energy (TSX:GTE) stock is intriguing, but the value proposition on this small-cap…

Read more »

sleeping man relaxes with clay mask and cucumbers on eyes
Dividend Stocks

3 Dividend Stocks That Could Help You Sleep Better in 2026

| Amy Legate-Wolfe

These three “sleep-better” dividend stocks rely on essential demand, giving you steadier cash flow when markets get noisy.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

2 Dividend Energy Stocks to Buy in March

| Rajiv Nanjapla

Given their strong fundamentals and disciplined capital allocation strategies, these two energy companies could sustain dividend growth in the years…

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Why Every Canadian Portfolio Should Have at Least 1 Energy Stock Right Now

| Chris MacDonald

Here are three top Canadian energy stocks for investors looking to defend their portfolio (and potentially benefit) from the recent…

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Energy Stocks

Suncor, Enbridge, or Canadian Natural? Here’s Which Oil Stock Makes Sense for Your Portfolio

| Chris MacDonald

Let's compare and contrast three of the best energy stocks in the Canadian market, and see which comes out as…

Read more »